Can Science and Technology stimulate the Nottingham Economy?
18th March
Keith Williams, Founder and CEO, GxPi
Stefan Ogrodzinski, Founder and CEO, BioStatus
Key Points
- Stefan established BioStatus “after failing with 5 dot com ideas and trying to import socks into Shepshed; the sock capital of Europe”. Keith set up his own business at the age of 16 and has always been “ intrigued by the idea of trying to build something out of nothing”.
- Stefan: “I think I’m unemployable and running my own business is my only option! I enjoy the creation of new ideas but became frustrated with the slow pace at which such ideas are developed by large companies”.
- BioStatus was established and run “ from a shed in my back garden in Shepshed in 2000 selling reagents over the internet. It was not funded by a Venture Capitalist and therefore was not able to burn money”.
- Key lesson – it takes longer than you think - around a 3 year cycle to establish a new product. Stefan had to do a separate job during this period to be able to fund the growth of the business. Therefore, the 5 year VC “in and out” time frame doesn’t work in practice.
- The way to promote new products is via networking - attend conferences and events and talk to people. Stay close to customers. Show them what your product can do. In Keith’s case having a consultancy relationship with clients built credibility, generated cash and provided a test bed for software solutions developed by his company. You also need to illicit customers’ feedback which sometimes can be difficult to accept: “ It’s not easy when you are told your baby is ugly”.
- You need to accumulate data. See what isn’t working and see if you can come up with a solution that gives you a competitive edge. Be Innovative, customer led, objective – keep reviewing your products.
- Networking is vital. It is unlikely that your ideas are unique. Use other people to short-circuit tackling problems. Stefan: “I spent half a day with a company and what I learnt saved me 3 years”.
- Select partners and confidants carefully. Non execs are as important as mentors. Identify people who can help you exploit your IP without giving it away.
- Business is about identifying mistakes.
- Entrepreneurs have a certain restlessness – they need to be doing new things. In many cases they are not the best people to grow businesses but are reluctant to hand over their baby to someone else. Entrepreneurs can be too protective and not prepared to let go. Different people are needed at different stages of the business growth cycle.
- Recession can be good for new businesses. It throws good people on to the jobs market and raw materials and premises can be cheaper.
- There are different types of customers;
- - Early pioneers and innovators;
- - Early Adopters – however sales can plateau once this market has been developed and need to move on to the
- - Early Majority – and find the early adopters within this group
- These different groups need different marketing techniques. Move from specialist knowledge to more generic simplified information
- (Book recommendation - Geoff Moore- Crossing the Chasm)
- General Comments - Nottingham is an attractive place to live and benefits from its central location. The science sector requires specialist knowledge and the skills in other industries are not always transferrable. However, the legacy of textiles and engineering may provide companies with opportunities to move into the areas of health sector product manufacture.
- The UK can be a frustrating place to develop a business due to bureaucracy and the lack of a pioneering spirit. In the UK people don’t grow businesses - they tend to get bought out before those businesses reach a substantive size. As a nation we tend to be critical of success. There is an expectation gap that means people are destined to be disappointed.